England – Global demand for gold rose by about 5 percent in the third quarter of this year on an annual basis, setting a record high with total purchases of $100 billion for the first time.
The World Gold Council indicated in a quarterly report yesterday, Wednesday, that demand for the precious metal reached 1,313 tons, supported by stronger investment flows from Western countries.
The council said that the increase in demand for the yellow metal came despite its prices recording historic peaks during the three months ending last September.
During the first nine months of this year, gold prices rose 29 percent, driven by lower global interest rates, escalating geopolitical tensions, and increased demand from central banks.
Council data show that global demand for gold also rose after strong demand from outside stock exchanges, that is, from individuals who found gold as a currently viable investment tool, and to protect their money from any risks.
He expected gold to witness an increase in demand for bullion, with geopolitical uncertainty, especially surrounding the US presidential elections next week, which increases the reasons for investors to seek to keep the haven asset.
On Wednesday, spot gold prices jumped to a new record high, with the US elections scheduled for November 5 approaching.
By (10:40 GMT), spot gold contract prices rose 0.4 percent, or $12, to $2,788 per ounce, surpassing the previous peak recorded on Friday, which amounted to $2,772.
Anatolia
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**Interview with Sarah Jenkins, Senior Analyst at the World Gold Council**
**Editor:** Thank you for joining us, Sarah. The World Gold Council has reported a remarkable 5 percent rise in global gold demand this past quarter, totaling a historic $100 billion. What do you think are the primary factors driving this unprecedented surge?
**Sarah Jenkins:** Thank you for having me. The increase is largely attributed to several key factors: lower global interest rates, heightened geopolitical tensions, particularly with the upcoming U.S. presidential elections, and a general shift among individual investors seeking gold as a safe haven asset. As prices have surged, many see gold as a hedge against uncertainty.
**Editor:** It’s interesting that demand increased even as gold prices reached record highs. How do you expect this trend to continue in the coming months, especially with the geopolitical uncertainties?
**Sarah Jenkins:** I believe we will likely see continued demand, especially if geopolitical tensions persist. Investors often flock to gold during uncertain times, and with the elections on the horizon, many are likely to turn to bullion for security against possible market fluctuations.
**Editor:** That leads to an important question: do you think this growing allure of gold signifies a shift in investment strategies? Are people moving away from traditional investments like stocks and bonds?
**Sarah Jenkins:** Yes, I think we’re witnessing a significant shift. More individuals are recognizing gold’s value in a diversified portfolio, especially in times of uncertainty. This raises an engaging debate: is gold becoming the preferred asset, or should it merely complement other investments?
**Editor:** That’s a thought-provoking question, Sarah. As our readers consider the implications of such a trend, we invite them to discuss—are they investing more in gold as a hedge against instability, or do they believe traditional assets still hold their ground as reliable options?
